3 High-Quality Value Stocks You Should Know

Group 1: Investment Opportunities - Three quality stocks are highlighted for investors to watch, characterized by strong margins and competitive moats, with Wall Street analysts projecting double-digit upside [2] - Companies like Colgate-Palmolive and H&R Block are noted for their recession-proof products, while Copart, Ulta Beauty, and Altria Group represent a balance of stability and growth potential [2][3] Group 2: Financial Metrics for Value Investors - Key financial metrics for evaluating stocks include gross margins above 20%, return on invested capital (ROIC), and reasonable debt levels [3] - Ulta Beauty has a gross margin of 43% and a steady ROIC of 25%, with only 45% of its total capital comprising debt [5] - Copart boasts a gross margin of 47.3% and an average ROIC of 15.5% over the past five years, with only 1.5% of its capital in debt [7] - Altria Group shows a gross margin of 69.5% and a recent ROIC of 36.2%, with a five-year average of 32% [10] Group 3: Stock Performance and Analyst Insights - Ulta Beauty's shares are currently at $381.83, down 1.21% from previous levels, with a price target of $535.45 indicating a potential rally of 40.2% [5] - Copart's stock is trading at $54.93, with a price target of $51.00, reflecting strong institutional buying of $14.9 billion over the past year [7] - Altria's shares are at $46.35, with a price target of $56, suggesting a potential increase of 20.9% from current levels [10]